Stablecoins have had huge volumes and strong growth this month, especially after the market massacre on March 12. Normally, USDT was the king of stablecoins after the market recession, but 4.6 billion USDT was not enough for all the liquidity needed to shield storms. Other tokens pegged in US dollars like USDC, TUSD and PAX also reaped great benefits and some of them were ranked among the top trading pairs with BTC.
Stablecoins have an increasing demand and thrive after the wrath of the cryptocurrency market
Currently, stablecoins are the 'floating' phenomenon among traders and they become a useful barrier for people when the crypto market price suddenly drops. Although some people dislike it and have a lot of controversy about stablecoins, they have continued to grow in popularity over the past few years. USDT is the most used stablecoin and has the largest market capitalization to date. In fact, USDT is often the leading trading pair with Bitcoin and has accounted for 60-75% of BTC transactions over the past week.
At the time of writing, USDT has a market valuation of about 4.65 billion USD. Coinmarketcap.com (CMC) data shows that USDT trading volume is $ 43.4 billion but the 'real volume' statistics of messari.io are only $ 1 billion. However, all figures confirm USDT has the most trading volume on March 15 out of more than 5,000 coins.
Not only USDT has been maintaining 60-75% of transactions with BTC in the past few days, but other stablecoins have also grown in the context of complicated price movements. Cryptocompare.com statistics show that stablecoins like USDC and PAX are among the top 5 trading pairs with BTC. USDC has 4.1% of BTC transactions and PAX has about 3% according to the data of cryptocompare.com.
Typically, stablecoins barely appear in the list of the top pairs dealing with BTC. On March 14, co-founder of Circle Jeremy Allaire explained the process of USDC growth over the past few days. “USDC skyrockets market demand in recent days, reaching new ATH at $ 568 million in circulation,” Allaire said. tweet. “It's even more attractive to see 'flight to a safe place' in the cryptocurrency macro market and there is a need for high-quality USD liquidity for the market.” Allaire continued:
2 / While not as exciting to see markets so crushed, raised still rewarding to see that this entirely new, entirely digital, blockchain based monetary infrastructure is working.
– Jeremy Allaire (@jerallaire) March 13, 2020
“While it's not interesting to see such markets being crushed, it's still encouraging because the all-new, completely digital, blockchain-based monetary infrastructure is working.” .
Price difference and liquidity of stablecoin
While Allaire discussed the situation after the disaster on March 12, the official Twitter account of Paxos Global also tweeted about the different types of stablecoins they offer custody and noted that projects have a total market capitalization. The school is “more than $ 395 million on March 12, 2020”. The TUSD Stablecoin has also increased the volume and the approximate total value of the TUSD market capitalization at the time of writing of $ 133 million.
Paxos is a Trust company, meaning we are a qualified custodian for USD-backed #stablecoins. We power $ PAX @PaxosStandard, $ HUSD @Stablecoin_HUSD and $ BUSD @binance Dollar, with a total market cap of more than $ 395 million as of March 12, 2020. https://t.co/ZWpJ2LUNkw
– Paxos (@PaxosGlobal) March 12, 2020
"Paxos is a trust company, which means we are a USD stablecoin-backed custody institution. We provide PAX, HUSD and BUSD with a total market capitalization of more than $ 395 million on March 12, 2020. "
Bitcoin Magazine recently also reported on the incident with the Makerdao defi project after the ETH price dropped more than 40% on Thursday. At that time, Makerdao's $ 4.5 million to 5 million stablecoins were pledged. Since then, however, the Single Collateral DAI tokens have performed much better and are currently priced at $ 1.05 per token.
BTC volume in currencies
Although most stablecoins are still priced at US $ 1 after March 12, liquidity demand causes prices to fluctuate across all existing stablecoins. Sometimes prices are a bit higher or lower. From there, traders seek to take advantage of price differences to sell tokens for higher profits in different markets.
There is a possibility that traders will continue to use stablecoins to stop the current storm. On Sunday, March 15, the cryptocurrency market gradually subsided and there was no major change. If the prices and profits of coins like BCH, ETH, BTC, etc. are improved early, it is likely that traders will gradually escape the stablecoin barrier. However, if the market drops in the near future, 'flight to a safe place' within the cryptocurrency economy could be put to the test with considerable stress. If the falling price continues to cause liquidity problems, it is possible that the dollarized tokens will be far more valuable than the 5-10 cent difference we see today.
You can see the price of stablecoins here.
Minh Anh
According to News Bitcoin
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